India’s Defence Budget may increase by Rs.50,000 Crore, Total Budget may cross Rs.7 Lakh Crore
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The Pahalgam Attack and Operation Sindoor has reiterated the demand of increasing the defence budget of India. The Pahalgam incident has shown that India needs to enhance its security and acquire more high tech military equipment.
Now, as per government sources, there are talks to increase the defence budget of India. The defence budget may be increased by Rs.50,000 crore. This additional amount is expected to be approved through a supplementary budget and will raise the total defence spending to over ₹7 lakh crore.
In the Union Budget presented on February 1, 2025, Finance Minister Nirmala Sitharaman had already allocated a record ₹6.81 lakh crore for the defence sector. This was a 9.2% increase compared to the previous year’s budget of ₹6.22 lakh crore for 2024-25. Now, with this possible ₹50,000 crore boost, the total defence allocation could cross ₹7 lakh crore for the first time in India’s history.
Defence Budget Over the Years
As of 2025–26, India remains one of the top defence spenders globally, with continued investments in technology, infrastructure, and defence preparedness. Let’s have a look at the defence budget over the years:
2017–2018:
The government allocated ₹3.59 lakh crore (approximately US$60 billion in 2023 value) for the development of the armed forces. This represented a 7% increase from the previous year’s budget.
2018–2019:
The defence budget rose to ₹4.04 lakh crore (US$64 billion in 2023), marking a 5.66% increase over the previous fiscal year.
2019–2020:
Due to general elections, an interim budget allocated ₹4.31 lakh crore (US$63 billion). After the elections, the actual expenditure reached ₹4.49 lakh crore (US$66 billion), showing a 10% rise from the previous year.
2020–2021:
Defence spending increased to ₹4.71 lakh crore (US$66 billion), recording a growth of nearly 9%.
2021–2022:
The allocation was ₹4.78 lakh crore (US$63 billion), a modest increase of just 1%.
2022–2023:
The budget grew significantly to ₹5.25 lakh crore (US$66 billion), nearly 10% more than the previous year. This made India the fourth-largest military spender in the world, after the US, China, and Russia.
2023–2024:
Defence expenditure reached ₹5.93 lakh crore (US$70 billion), continuing the trend of steady increases.
2024–2025:
The budget rose further to ₹6.22 lakh crore (US$74 billion), forming 1.89% of the projected GDP for the year.
2025–2026:
For the fiscal year 2025–26, India’s defence allocation climbed to ₹6.81 lakh crore (US$81 billion), marking a 9.5% increase from the previous year. A major share of the budget went toward salaries, pensions, and capital expenditures focused on modernization and domestic procurement. This year’s defence budget forms 1.9% of the projected GDP.
Defence Spending as a percentage of GDP
| Year | Ruling coalition | Expenditure (%) | Change |
|---|---|---|---|
| 2024 | National Democratic Alliance | 1.89 | 0.08 |
| 2023 | 1.97 | 0.24 | |
| 2022 | 2.21 | 0.45 | |
| 2021 | 2.66 | 0.22 | |
| 2020 | 2.88 | 0.36 | |
| 2019 | 2.52 | 0.10 | |
| 2018 | 2.42 | 0.09 | |
| 2017 | 2.51 | 0.00 | |
| 2016 | 2.51 | 0.10 | |
| 2015 | 2.41 | 0.09 | |
| 2014 | 2.50 | 0.03 | |
| 2013 | United Progressive Alliance | 2.47 | 0.07 |
| 2012 | 2.54 | 0.11 | |
| 2011 | 2.65 | 0.06 | |
| 2010 | 2.71 | 0.18 | |
| 2009 | 2.89 | 0.34 | |
| 2008 | 2.55 | 0.21 | |
| 2007 | 2.34 | 0.18 |
What Will the Extra Money Be Used For?
The additional budget is likely to be used for:
- Research and development in defence technology
- Purchasing new weapons and advanced equipment
- Stocking up ammunition
- Strengthening India’s air defence systems and other military capabilities
Approval for this enhanced budget will be sought during the upcoming Winter Session of Parliament.
Focus on Defence Since 2014
Defence is a big focus of the Modi Government. The Narendra Modi government has consistently made defence a priority since coming to power in 2014. In its first year, the government had allocated ₹2.29 lakh crore to the Defence Ministry. Since then, the defence budget has increased year after year. Currently, the defence ministry receives the highest allocation among all ministries, making up about 13% of India’s total budget.
